Our acquisition criteria are stringent and defined with precision. We actively seek businesses boasting recurring revenues, embracing an asset-light structure, and demonstrating a robust mastery of digital marketing and operations. Our preference lies in ventures situated within sectors poised for promising future growth. In contrast, we deliberately avoid enterprises marked by unproven business models, erratic revenues, or financially unprofitable profiles. This discerning approach ensures that our acquisitions align strategically with sustainable growth and profitability.
Our financial approach to acquisitions is characterized by disciplined precision, with a predominant strategy of acquiring businesses at 3-4x EBITDA. This conservative model, coupled with streamlined operations, positions us to effectively compound capital within the range of 25-35%. This disciplined financial strategy underpins our commitment to strategic and sustainable growth in the realm of acquisitions.
The bedrock of our success lies in our management team, bringing together over 150 collective years of diverse experience. Our core competency is evident in our ability to identify profitable businesses with untapped potential for optimization. Post-acquisition, we excel in skillfully integrating and operating these businesses, unlocking and maximizing their inherent potential for sustained success.
Recognizing the pivotal role of transparent communication, we proactively engage in sharing our corporate narrative. This initiative is crafted to illuminate the extensive potential encapsulated within Henagon for external stakeholders who may not be intimately acquainted with our day-to-day operations.